Loeb & Loeb is pleased to have advised Hong Kong-listed pharmaceutical company China Grand Pharmaceutical and Healthcare Holdings Limited (CGP) (stock code:00512.HK) in a landmark rights issue that raised a total of HK$2.05 billion and was the first of its kind following the recent amendments to the Hong Kong Listing Rules.
Loeb advised CGP on its rights issue of up to 553,676,287 rights shares on the basis of 6 rights shares for every 25 shares held at HK$5.20 per rights share on a non-underwritten basis. The rights issue closed in September 2018 and a total of HK$2.05 billion was raised. The net proceeds have been used for funding CGP’s acquisition of Sirtex Medical Limited, an Australian-based global life-sciences company which sells SIR-Spheres, a targeted radiation therapy for liver cancer.
The funding exercise, which will support CGP’s strategic venture into the field of interventional oncology, is the first rights issue announced after the change of the Hong Kong Listing Rules relating to capital raisings became effective on July 3, 2018. Thanks to the removal of the mandatory underwriting requirement for rights issues under the new regime, CGP was able to complete the rights issue on a non-underwritten basis swiftly to finance its acquisition of Sirtex Medical Limited.
CGP is an investment holding company principally engaged in the research and development, manufacture and sales of pharmaceuticals. CGP’s products include preparations, raw materials, medical devices, healthcare products, as well as agricultural and fine chemicals. Its products mainly focus on ophthalmic, cardiovascular and antibacterial, among other things.
Loeb & Loeb’s Hong Kong partners Michael Fung and Jeffrey Kung led the transaction, with support from counsel Emily Fan and associate Edgar Siu.